Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Bermuda

Article 2 of the Convention. Insertion of labour clauses into public contracts. In its previous comments, the Committee requested the Government to formulate standard binding documents incorporating labour clauses into all public contracts and to provide a copy of the Code of Practice for Project Management and Procurement, which was in preparation under the Good Governance Act 2011. The Committee notes the draft version of the Code of Practice for Project Management and Procurement transmitted by the Government with its report. It observes, however, that the draft Code of Practice does not refer to or contain any labour clauses ensuring that workers engaged under public contracts enjoy conditions of labour, including wages and hours of work, which are not less favourable than those established for work of the same character in the same district, as required under Article 2(1) of the Convention. The Committee once again recalls that the principal objective of the Convention is to promote good governance and socially responsible public procurement by requiring contractors to apply locally established prevailing rates of pay and terms and conditions of work as determined by law or collective agreement. The Convention calls for the establishment of a level playing field – in terms of labour standards – for all economic actors, so as to ensure fair competition. Requiring all bidders to respect, as a minimum, certain locally established standards prevents wages, working time and working conditions from being used as elements of competition. Consequently, no downward pressure on wages and working conditions may be exerted. The Committee expresses the firm hope that the Government will take steps without delay to formulate standard bidding documents incorporating labour clauses into all public contracts (whether for construction works, goods or services) that are fully aligned with the requirements of Article 2 of the Convention. It requests the Government to keep the Office informed of progress made in this regard and to transmit a copy of the Code of Practice for Project Management and Procurement once it is adopted.